[WSBARP] Due on sale, and wrap-around sale to kids

[Jan Kelly]

To the list, please. This is a good question.

Jan Kelly, JD, MBA
Attorney at Law
JK Law
PO Box 1964
Poulsbo, WA 98370
Direct Line (702) 338-6733
Licensed in Nevada and Washington.

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Craig Blackmon
Sent: Thursday, August 14, 2025 11:25 AM
To: WSBA Real Property List Serve <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Due on sale, and wrap-around sale to kids

'Mates, with interest rates remaining elevated (over recent history, anyways) I have gotten a few inquiries from parents looking to convey the home to an offspring, without paying off the existing mortgage. By my reading of the Garn St. Germain Act, a conveyance to an offspring cannot trigger the due on sale provision.

Does that mean parents can sell to offspring with a seller-financed "wrap around" mortgage, subject only to any "no further encumbrances" term in the original DOT? If not, what am I missing?

Any insight is deeply appreciated!

Craig
Craig Blackmon, Attorney at Law<https://www.mywsba.org/PersonifyEbusiness/LegalDirectory/LegalProfile.aspx?Usr_ID=000000029240>
92 Lenora St. #13, Seattle WA  98121
Office/Cell: (206) 369-5949
On the blog: Changes to Title and the QCD<https://seattlepropertylawyer.com/blog/quitclaim-deed-explained>
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